(TDS): Corporate tax The tax rate is 25 percent for domestic companies. For new companies incorporated after 1 October 2019 and beginning production before 31 March 2023, the tax rate is 15 percent. Both rates apply only if a company claims no exemptions or concessions. For foreign companies, the tax rate is 40 percent (50 percent on royalties and technical services). Surcharges and cesses, including a four-percent health-and-education cess, are levied on the flat rate. Electronic filing is mandatory. Surcharges Non-corporate taxpayers pay a 10-percent surcharge on income between 5 million and 10 million. There is a 15-percent surcharge on income over 10 million. Domestic companies pay seven percent on taxable income between 10 million and 100 million, and 12 percent on income over 100 million. Foreign companies pay two percent on income between 10 million and 100 million, and five percent on income over 100 million. Tax returns There are four types of income-tax returns: Normal return (§139(1)) – Individuals with an income above 250,000 (under age 60), 300,000 (age 60 years to 79 years), or 500,000 (over 80) must file a return. Due dates vary. A belated return, under §139(4), may be filed before the end of the assessment year. A revised return, under §139(5), may be filed for a normal or belated return by the end of the assessment year. An assessing officer may flag a defective return under §139(9). Defects must be rectified by the taxpayer within 15 days of notification. Annual information return and statements Those responsible for registering or maintaining accounting books or other documents with a record of any specified financial transaction must file an annual information return (Form No. 61A). Producers of a cinematographic film during the financial year must file a statement (Form No. 52A) within 30 days of the end of the financial year or within 30 days of the end of production, whichever is earlier. Non-residents with a liaison office in India must deliver Form No. 49A to the assessing officer within sixty days of the end of the financial year. Finance Act, 2021 In the Finance Act, 2021, the government has introduced the following changes on the Income Tax Act, 1961: Amendments for taxation of income arising from Firm/AOP/BOI; Increased tax Incentives for International Finance Service Centre; Denial of depreciation on Goodwill; Full value of consideration for computation of capital gains on slump sale to be at Fair